Mercadona is Awarded a 30,220 m2 Plot in Sevilla for €10.8M

20 March 2019 – Diario de Sevilla

The Town Hall of Sevilla has awarded a plot of land spanning 30,220 m2, with a buildability of 38,580 m2, in the Higuerón Sur area of the city, to Mercadona for €10.8 million.

The supermarket company is planning to build a warehouse on the site to serve its online shopping service in Sevilla and the surrounding area. Construction work is expected to begin in 2020.

Mercadona already has a similar kind of centre, which it calls a “hive” in the city of Valencia. Moreover, it plans to open two new hives in 2019, in Barcelona and Madrid.

Original story: Diario de Sevilla (by Alberto Grimaldi)

Translation: Carmel Drake

Town Hall of Sevilla Grants Plot to Insur in Exchange for 63 Homes, 3 Retail Premises & €3.5M

6 July 2018 – Inmodiario

The Town Hall of Sevilla, through Emvisesa, and the company Inmobiliaria del Sur (Insur) have formalised an operation to exchange a plot of land on c/Ramón Carande included within the strategy to urgently expand the public housing stock and approved by the Town hall with a final value of €11.2 million, excluding the investment that the company will make to develop the land acquired.

In this way, and following a public tender, the city is exchanging a plot of land worth €7 million on which it will build up to 68 homes, for 63 constructed and completed homes, plus three commercial premises, a plot of land for 135 flats and €3.5 million.

“This is an innovative project of a social nature, which we launched with the backing of the Town Hall at the start of the mandate and which is now a reality. It is a good agreement for the city, which allows us to respond to an urgent need: to expand the public housing stock immediately”, explained the Mayor of Sevilla, who participated in the event at which the exchange agreement was signed together with the Delegate for Social Well-being and Employment, Juan Manuel Flores; the Delegate for Urban Living, Tourism and Culture, Antonio Muñoz; the Manager of Emvisesa, Felipe Castro; and the President and CEO of Inmobiliaria del Sur, Ricardo and Francisco Pumar.

Upon signing the agreement, the company handed over the 63 completed homes to the Town Hall. They are ready for the tenants to move into and 51 of them are located in the same block, on Avenida de Andalucía. They have a total appraisal value of €6.5 million.

The local government, through Emvisesa, is already working to formalise the change in rating from sale to rental and to complete their award (to their new tenants) as soon as possible with the following split: 70% will be allocated to young people recorded in the claimants register and the remaining 30% will be social housing properties based on criteria established by Social Well-being.

Similarly, three commercial premises are being incorporated into the town hall’s portfolio, which will be marketed as part of the municipal employment programs. A plot of land in Valdezorras is also being incorporated, where 135 more affordable homes may be built, which will be executed by Emvisesa.

Finally, Emvisesa will also receive €1.2 million from this operation, which will be used to purchase empty Emvisesa homes that have a total budget of €1.5 million and which already has 25 homes appraised and valid for acquisition. The remaining €2.3 million will be used for renovation projects, such as the new inter-generational housing block on c/García Ramos.

Original story: Inmodiario 

Translation: Carmel Drake

Metrovacesa to Invest €400M in a 2,870-Home Residential Project in Sevilla

7 June 2018 – Eje Prime

Metrovacesa is looking south in its growth plan for the next few years. The listed property developer has unblocked, together with the Town Hall of Sevilla, what is going be its largest project outside of Madrid and Barcelona and what constitutes the largest development currently being planned in the Andalucían capital.

The project is going to bear the name of the Sevillan neighbourhood in which it is located, Palmas Altas Sur, and will consist of a 2,870-home development, of which 2,000 units will be built by Metrovacesa. The remainder will be social housing properties and their construction will be entrusted to the Town Hall, according to El Confidencial.

For the property developer, this land is the most significant plot that it has undeveloped at the moment in its Andalucían portfolio – that region accounts for 25% of the company’s total land bank. The first 600 homes in Palmas Altas Sur will start to be handed over from 2021. Moreover, Metrovacesa will also build 400 VPO homes as part of its construction plan for the area, which will last for five years.

In terms of investment, in the access routes and urbanisation of the land, Metrovacesa is going to invest €60 million, which will come from the corporate loan the firm signed with seven financial institutions at the end of 2017. For the construction of the residential buildings, Pérez de Leza has announced that they will be financed through property developer loans for each phase.

Original story: Eje Prime

Translation: Carmel Drake

The Would-Base Developer of 13,000 Homes in Sevilla is Declared Insolvent

29 May 2018 – ABC Sevilla

Desarrollo Urbanístico Sevilla Este (Duse), the company that was going to build more than 13,000 homes on a 330-hectare site next to the airport, Parque Alcosa and Sevilla Este, has filed for creditor bankruptcy in Mercantile Court number 1 of Sevilla after accumulating debt amounting to €300 million. The company has filed for liquidation after waiting fifteen years for the Town Hall to execute general infrastructure work, for which it had paid the Town Hall €60 million when Alfredo Sánchez Monteseirín was mayor.

Just when it seemed that we had seen the last of the bankruptcy proceedings involving major companies in Sevilla, the demise of Duse comes as a wake-up call for the local real estate sector. The liquidation of this company means the suspension of the urban development that was set to become one of the great areas of expansion in Sevilla: Santa Bárbara.

Duse is owned by Sando Proyectos Inmobiliarios (53.9%); Realia Business (30.5%), linked to FCC; the investment fund Vertrauen Corporate, to which Unicaja sold its 5.99% stake in 2016; Bankia (2.7%) and Bankinter (1.12%), according to the Mercantile Registry. The company owns two plots spanning more than 330 hectares on the Santa Bárbara estate. Some of this land was expropriated in the 1970s and returned to its former owners over the subsequent decades, including the heirs of Augusta Peyré, which ended up selling their land to Sando in 2002.

Urban planning agreement

Before the new PGOU was agreed in 2006, the owners of those plots signed an urban planning agreement to collaborate with the Town Hall of Sevilla to execute the urban development plan. Thus, in 2003, at the height of the real estate boom, urban planning agreements were signed between Sando and the Leaders of the Urban Planning Department for the development of the two plots spanning more than 330 hectares.

In those agreements, the Town Hall undertook to establish a certain buildability ratio for the plots and the owners agreed to bear the acquisition cost of the general infrastructure work (involving the construction of streets, avenues, roundabouts…). The PGOU established that a maximum of 2 million m2 could be built in Santa Bárbara, which would allow for the construction of 13,853 private and social housing units (…).

In exchange for that buildability, Duse paid the Town Hall €15.4 million for the acquisition of land for the external general infrastructure and €42.6 million for the execution of the construction work. In total, Duse paid the Town Hall €58.1 million, according to sources consulted by ABC (…).

The municipal Government received that money but failed to execute the general infrastructure work following the end of the economic crisis (…).

In 2017, Duse filed a claim against the Town Hall for €75.4 million – the €58.1 million it had handed over plus €17 million to cover interest, damages and harm – for the breach of the urban planning agreements (…).

In order to execute the project, Duse signed a loan with Caja Madrid for more than €200 million, which has now risen to an outstanding balance of €300 million due to the non-payment of the principal and interest. As a result of the reordering of the banking sector and the transfer of toxic assets to the so-called “bad bank”, Caja Madrid’s loan for the development of Santa Bárbara ended up in the hands of Sareb.

Sareb’s unpaid loan

In March, the loan in question matured, and so Duse offered Sareb the option to renew it, now that the economic recovery has reactivated real estate demand, or take over the plots as “dación en pago”. According to sources close to the operation, Sareb rejected both proposals. The economic crisis and the failure by the Town Hall to execute the general infrastructure work have ended up economically suffocating the property developer, which has finally thrown in the towel and filed for credit bankruptcy, starting liquidation proceedings.

What will happen to those plots now? In all likelihood, they will go up for auction. If nobody is awarded them, they will end up in the hands of Sareb, which is now the counterparty of the almost €300 million loan that Duse has outstanding (…).

Original story: ABC Sevilla (by María Jesús Pereira)

Translation: Carmel Drake

Octagon & Orion will Invest €400M in Sevilla Park

13 March 2018 – Eje Prime

Sevilla Park has a start date. Construction of the concert venue and shopping centre is going to begin in March 2019 and will involve an investment of €400 million by the promoters of the project, the marketing and entertainment agency Octagon and the investment fund Orion.

The two companies have reached an agreement with the Town Hall of Sevilla to start building work on land in the Port of the regional capital. Nevertheless, the President of Octagons S2, Xavier Bartrolí, said at a press conference that, if the deadlines are not adhered to, it will be very difficult for the project to continue in Sevilla.

“It is not that we lack energy, but there comes a time when you start to feel a little fatigued”, recognised the director, whose plan with Sevilla Park is for it to start operating in 2020, the year in which the first international artists will be hosted in the space following 18 months of construction work, according to ABC de Sevilla.

The obstacle that the property developers had found until now was the transfer of some CLH deposits to another location from the port, a pitfall that has now been overcome, although it has resulted in an extra cost of €30 million for the investors.

Original story: Eje Prime

Translation: Carmel Drake

Aedas Homes Unveils its Plans for Hacienda del Rosario (Sevilla)

8 January 2018 – ABC Sevilla

A new neighbourhood with more than 1,000 homes for families aged between 30 and 45 at affordable prices. That is the project that is now being built in Hacienda del Rosario, right opposite the Decathlon store and next to the Parsi Industrial Estate. The aim is to develop the city’s urban planning project and recover the demographic indices last seen a decade ago.

The Aedas Homes group is going to build 1,046 two-, three- and four-bedroom homes in seven 10-storey towers over a surface area of 93,000 m2, of which 73,000 m2 will comprise green space. And the Town Hall is going to build another 218 social housing properties on an adjacent plot, owned by the Urban Planning Department, which Emvisesa has already started to process. That means that by the start of 2019, Sevilla will have a new district with more than 2,000 homes, including not only these projects but also the one in Santa Bárbara.

On Monday, the mayor, Juan Espadas, visited the site where Aedas – which is also responsible for the Cisneo Alto project and the new Ramón y Cajal urbanisations – is starting work on land that it purchased in 2016 from Gabriel Rojas in the East of the city. Specifically, the plots are located between the A-92 and the shopping centre that houses the aforementioned Decathlon store. The access roads have already been built and the Town Hall has granted the relevant licences for the construction of the residential areas, which will include a park measuring seven hectares, a social club and common areas with a swimming pool and padel courts.

For Espadas, “this project is not simply a housing development, but rather the creation of a new neighbourhood in Sevilla, which means that we are at the beginning of the post-crisis and we have left behind the black hole in the construction sector”. The area of expansion is destined for “established families who want a more comfortable environment at a good price”, explains the mayor. The regional director of Aedas, Diego Chacón, highlight that these homes will cost between €120,000 and €150,000, and will be financed by Banco Santander and constructed by San José. The first tower, which will have 142 homes, will be handed over within a year. And from then, the area will come to life continuously in search of a clear objective that the major himself has admitted: “The registration of citizens (‘empadronamiento’) in the city will be activated again”.

Original story: ABC Sevilla (by Alberto García Reyes)

Translation: Carmel Drake

Work Begins on the First 142 Homes in Hacienda del Rosario (Sevilla)

8 January 2018 – Emvisesa

Today, the mayor of Sevilla, Juan Espadas, together with the representative for Urban Habitats, Culture and Tourism, Antonio Muñoz, the representative for the Este-Alcosa-Torreblanca District, Adela Castaño and the manager of Emvisesa, Felipe Castro, have visited the new housing development in Jardines de Hacienda del Rosario (Sevilla), where the first 142 homes are now being built on a site where more than 2,000 new homes are planned. In total, the urban development planned in the PGOU affects more than 460,000 m2 of space including residential land, open spaces, green areas and other facilities.

“This development shows that the large projects planned in the PGOU are being unblocked and that the housing sector is reactivating, which should contribute to the city through new developments and renovations to generate opportunities, especially for young people, to reduce unemployment and to increase the population registered in Sevilla. It must always be done in a sustainable and balanced way”, said the mayor of Sevilla, who highlighted that the model also includes a mix of private and subsidised homes, like in the case of Hacienda del Rosario. Of the 2,000 homes planned there, 824 will be social housing properties.

The urban development has been initiated by Aedas Homes, with the first of seven private residential buildings, inside a residential complex with more than 33,000 m2 of open space, including garden areas, a social club and children’s play areas. In total, 142 of the 1,000 homes planned are being constructed and the idea is that these first properties will be handed over at the beginning of 2019.

This same urban development is one of those included in the strategy to urgently expand the public stock of homes designed by Emvisesa with the aim of building 1,000 social housing properties over the next few years. To this end, the paperwork has been started by the Urban Planning Department to grant Evisesa the first plot in Hacienda del Rosario so that it can build 218 subsidised homes there on the plot measuring 9,044 m2.

Juan Espadas has confirmed that Emvisesa’s Board of Directors has already given the green light to the provision by the Urban Planning Department of a plot for the construction of a first set of 218 homes at affordable prices, to be constructed and promoted by Emvisesa. Therefore, there will be a harmonious development of affordable and private housing, like has been seen in other neighbourhoods in the city.

“Many projects are being unblocked, which reflects the economic reactivation that is being achieved in the city”, explains the mayor of Sevilla. In fact, the volume of building permits granted in 2017 exceeded €230 million, almost double the volume granted in the previous year. Moreover, more than 1,000 housing licences were granted, equivalent to the sum of all of those granted in the years 2011, 2012, 2013 and 2014.

In this sense, the mayor highlighted the importance of the definitive approval at the recent Plenary of the modification to the Ordinance Regulating Construction Work and Activity (OROA) issued by the Town Hall of Sevilla to streamline the procedures and facilitate the opening of new projects in the city, as well as the process that is entering its final phase to unify the services of Urban Planning and the Environment.

Original story: Emvisesa

Translation: Carmel Drake

Grupo Amenabar Joins Forces With Sareb To Build 100 Homes In Sevilla

20 November 2017 – Eje Prime

Grupo Amenabar is finding new work for its property developer. The Basque company, whose main line of business is construction, has been awarded the project to build one hundred homes in Sevilla, which will boost the growth of its residential development area. The project has been awarded by Sareb, after it put a 4,373 m2 plot of land up for auction in the La Florida area of the Andalucian capital. The two companies will work together to build the complex.

The two entities are working against the clock to submit the basic design before 27 November, in order to obtain the construction permit from the Town Hall of Sevilla and thus be in a position to sign the contract, according to ABC.

The plot in La Florida used to be owned by the company Novaindes, until it filed for creditor bankruptcy and liquidated its company following the burst of the real estate bubble. Sareb took over the land in 2013 for €61 million.

Amenabar Promociones Residenciales is the property developer arm of the Basque group, whose turnover in 2016 amounted to €380 million. The property developer from San Sebastián has invested more than €200 million on the purchase of land over the last two years. Most of the land it has acquired is located in Madrid, País Vasco, Cataluña, Navarra and the Costa del Sol, but it is also considering investment opportunities in other provincial capitals.

The group currently has a land portfolio spanning more than half a million square metres, worth €900 million.

Original story: Eje Prime

Translation: Carmel Drake